Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-28-2015, 08:33 AM   #21
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
There is no penalty for withdrawals from TSP before age 59 1/2 as long as you are or become age 55 in the year that you retire, so no need for 72t. Also, at age 45, you should forget about percentages of income you are contributing, and totally max out your contributions up to the IRS limits. Speaking from experience. Retired Fed.

Sent from my SAMSUNG-SM-G900A using Early Retirement Forum mobile app
__________________

__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-31-2015, 10:24 PM   #22
Dryer sheet wannabe
 
Join Date: Mar 2015
Location: Albuquerque
Posts: 12
Anybody have any rental properties that have allowed them to retire early? If so. ..would you please provide your input regarding my post #19. Is there any such thing as a "comfortable debt level?" If I buy another rental I will have three mortgages which is a little intimidating.

I am on the fence regarding what option would be more profitable towards my early retirement. Please read post #19 for more details.
__________________

__________________
aoak is offline   Reply With Quote
Old 04-04-2015, 09:50 AM   #23
Dryer sheet wannabe
escapee2020's Avatar
 
Join Date: Apr 2015
Posts: 13
But rental property however make sure there 15-20k equity that means you bought it slightly below market. If you are paying full price depending on your area you may want to wait and to buy. I love real estate and own properties it great cash flow and tax benefits as well as someone paying down your rental so when you get the cash flow put that money toward extra payments in 10-12 you can still have 1-2 paid off properties. buying right is the strategy


Esc
__________________
escapee2020 is offline   Reply With Quote
Old 04-04-2015, 09:51 AM   #24
Dryer sheet wannabe
escapee2020's Avatar
 
Join Date: Apr 2015
Posts: 13
Typo - I was meaning to say buy not but


Esc
__________________
escapee2020 is offline   Reply With Quote
Old 04-04-2015, 11:54 AM   #25
Recycles dryer sheets
 
Join Date: Mar 2015
Location: Near Pensacola
Posts: 66
Quote:
Originally Posted by martyb View Post
There is no penalty for withdrawals from TSP before age 59 1/2 as long as you are or become age 55 in the year that you retire, so no need for 72t. ....
If you retire early you can opt for "life expectancy" payments from TSP without penalty .... only hitch is you are stuck with receiving those payments till age 59.5 at which time they will allow you to change to a different disbursement option. I retired very early (LEO) at age 49 & that's what I'm doing. I have a sizeable TSP account though as I always put in the max (with matching) from day 1 with my agency for 26+ years.

It's effectively the same thing as a 72T ... just don't have to roll it out of TSP into an IRA.
__________________
AndyS is offline   Reply With Quote
Old 04-07-2015, 02:18 PM   #26
Recycles dryer sheets
Kaufmanrider's Avatar
 
Join Date: Jun 2013
Location: Forney
Posts: 120
You sound like me Andys. I had to check the posters name to make sure it wasn't me. :-) Retired at 49, LEO, 26 years plus 5.5 military. But I rolled my TSP into a self directed IRA and I am taking 72t withdrawals.

Sent from my SPH-L720 using Early Retirement Forum mobile app
__________________
Kaufmanrider is offline   Reply With Quote
Old 04-07-2015, 03:27 PM   #27
Recycles dryer sheets
 
Join Date: Mar 2015
Location: Near Pensacola
Posts: 66
Quote:
Originally Posted by Kaufmanrider View Post
You sound like me Andys. I had to check the posters name to make sure it wasn't me. :-) Retired at 49, LEO, 26 years plus 5.5 military. But I rolled my TSP into a self directed IRA and I am taking 72t withdrawals.

Sent from my SPH-L720 using Early Retirement Forum mobile app
Looking at your location .... maybe we worked together at some time?

Edit: After snooping through one of your past posts, I take it back. I did work with your agency on-and-off quite a bit through the years though. And I would not be at all surprised if you know my sister-in-law & brother-in-law.
__________________
AndyS is offline   Reply With Quote
Old 04-12-2015, 03:05 PM   #28
Dryer sheet wannabe
 
Join Date: Mar 2015
Location: Albuquerque
Posts: 12
Quote:
Originally Posted by AndyS View Post
Looking at your location .... maybe we worked together at some time?

Edit: After snooping through one of your past posts, I take it back. I did work with your agency on-and-off quite a bit through the years though. And I would not be at all surprised if you know my sister-in-law & brother-in-law.
Quote:
Originally Posted by AndyS View Post
If you retire early you can opt for "life expectancy" payments from TSP without penalty .... only hitch is you are stuck with receiving those payments till age 59.5 at which time they will allow you to change to a different disbursement option. I retired very early (LEO) at age 49 & that's what I'm doing. I have a sizeable TSP account though as I always put in the max (with matching) from day 1 with my agency for 26+ years.

It's effectively the same thing as a 72T ... just don't have to roll it out of TSP into an IRA.
Thank you for the insight on your experience with 72t withdrawals. Do you have to put in 20 years of service as an LEO for the Federal government? If so, you should not have any penalties on your pension withdrawals, right? In my case I have to retire at 30 years of service and at 55 years of age if I do not want to get penalized on my pension.
__________________
aoak is offline   Reply With Quote
Forget my pension???
Old 04-12-2015, 03:14 PM   #29
Dryer sheet wannabe
 
Join Date: Mar 2015
Location: Albuquerque
Posts: 12
Forget my pension???

Is it save to say that I should be planning my retirement at age 45 with the mindset that I will not have a pension? Even if I did get a pension, I believe that it would be very minimal. Since my pension would only be 30% of my high 3 salaries, I have felt that I should be entirely relying on my TSP.

Are there any Federal Retirees that have retired between 45 and 50 that can share their pension experience?

Thanks
__________________
aoak is offline   Reply With Quote
Old 05-01-2015, 09:55 AM   #30
Dryer sheet wannabe
 
Join Date: Apr 2015
Posts: 18
Quote:
Originally Posted by aoak View Post
Is it save to say that I should be planning my retirement at age 45 with the mindset that I will not have a pension? Even if I did get a pension, I believe that it would be very minimal. Since my pension would only be 30% of my high 3 salaries, I have felt that I should be entirely relying on my TSP.

Are there any Federal Retirees that have retired between 45 and 50 that can share their pension experience?

Thanks

I am still working, but I am a Fed in FERS and am looking at retiring at age 50.

No, don't forget about your pension. It won't be huge, but it will be useful. If you want to plan as if it didn't exist, to be conservative, be my guest.

Here are the details for your case (assumptions noted):
1. I assume you and your wife both began working for the Feds at age 22.
2. You do a "deferred retirement" by resigning at age 45. You will have 23 years of creditable service. Your wife resigns at age 41. She has 19 years of creditable service.
3. You both have 0.5 years of accumulated sick leave. For pension computation purposes that will bump you up to 23.5 years of service and her to 19.5.
4. I assume both your high-3s (in today's dollars) will be $100,000
5. I assume that inflation for the 17 years from your age 45 retirement to your age 62 onset of pension COLA will be 3%
6. You will be able to get your pension at age 62. Your wife will be able to draw hers when you are 66.
7. Pension math is: (service/100)*(high-3)/Inflation

Inflation from age 45 to 62 is 65% (you). From age 41 to 62 is 86% (her).
Inflation calculation is 1.03 ^ 17 (17 years of 3% inflation) = 1.65 for you.
Inflation calculation is 1.03 ^ 21 (21 years for her at 3%) = 1.86 for her.

Your FERS pension = [(23.5%)*($100,000) / 1.65] = $14,242 beginning at age 62

Her FERS pension = [(19.5%)*($100,000) / 1.86] = $10,484 beginning at her age 62 (your age 66).

Your wife's is a good bit less since she'd have 4 less years in service and 4 more years of sweating out no COLA.

That is all in today's dollars. I imagine it will be comparable to, but a little less than, your own Social Security age 62 benefit. I'd guess that will be around $18,000 in today's dollars. Same for your wife.

Your total age 62-66 income would be on you, and would be:
SS (you): $18,000
FERS (you): $14,000
-----
total: $32,000

66-onwards would be:
SS (you): $18,000
SS (her): $18,000
FERS (you): $14,000
FERS (her): $10,500
-----
total: $60,500


I hope my math was correct.
__________________
Proteus126 is offline   Reply With Quote
Old 05-01-2015, 02:02 PM   #31
Recycles dryer sheets
 
Join Date: Mar 2015
Location: Near Pensacola
Posts: 66
Quote:
Originally Posted by aoak View Post
Thank you for the insight on your experience with 72t withdrawals. Do you have to put in 20 years of service as an LEO for the Federal government? If so, you should not have any penalties on your pension withdrawals, right? In my case I have to retire at 30 years of service and at 55 years of age if I do not want to get penalized on my pension.
LEO/Firefighter/ATC retirement under FERS is: 20 years and age 50 - or - 25 years at any age. (I had 26 years at age 49 + I 'bought" my 4 years active duty military time ... so my annuity is calculated based upon 30 years)

No ... I have no penalties deducted from my annuity other than for survivor benefit for my spouse.

As to TSP ... my withdrawals would be penalized 10% like anyone else if I wasn't doing "life-expectancy" withdrawals for which there is no 10% penalty. I can change that option at age 59.5 There's a calculator on TSP website.
__________________

__________________
AndyS is offline   Reply With Quote
Reply

Tags
federal, healthcare, rental property, tsp


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Federal Employee Phased Retirement Regulations timo2 FIRE and Money 2 08-08-2014 06:28 PM
Hi...Learning and Trying to retire early in life of course sunshine98 Hi, I am... 6 01-28-2014 07:27 PM
23 and trying to learn early.... ocsk8er03 Hi, I am... 5 09-22-2009 05:49 PM
Hi, 54 yo, Federal Employee in NW Washington, Wary of Retiring at 55 TopDown Hi, I am... 40 02-24-2009 06:03 PM
free federal employee handbooks WM Other topics 1 09-04-2007 08:30 AM

 

 
All times are GMT -6. The time now is 01:41 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.